- Cardano’s total value locked (TVL) in decentralized finance (DeFi) has reached a new all-time high, demonstrating growing adoption.
- The network has witnessed a notable increase in user activity and a significant rise in ADA’s value over the past month.
Cardano’s DeFi Ecosystem: A New Era of Growth
The Cardano blockchain network has achieved a remarkable milestone, with its total value locked (TVL) in the decentralized finance (DeFi) ecosystem reaching an unprecedented high. According to data from DefiLlama, Cardano‘s TVL has soared by nearly 50% in the last month, propelling it to become the ninth-ranked blockchain network in terms of DeFi TVL. As of the latest data, Cardano’s TVL stands at $376.54 million, signaling a significant uptick in the adoption of DeFi protocols on the platform.
This milestone is indicative of a broader trend of increasing engagement and trust in the Cardano ecosystem. The surge in TVL reflects a growing confidence among users and investors in the network’s capabilities and the effectiveness of its DeFi offerings.
Surge in Network Activity and User Engagement
The past month has been a period of heightened activity within the Cardano network, coinciding with the increase in its TVL. AMBCrypto’s analysis reveals that there has been a surge in the daily count of active addresses on the Cardano network. In particular, the network saw a record high of 77,000 daily active addresses on December 9, the highest since July. Additionally, Cardano’s daily transactions count reached a year-to-date peak of 113,000 on the same day, further demonstrating the network’s growing vibrancy and user engagement.
Another key indicator of Cardano’s burgeoning ecosystem is the explosive growth in trading volumes on its decentralized exchanges (DEXs). On December 9, Cardano DEXs recorded a trading volume of $18 million, a level not seen since June. This significant rise in trading volumes highlights the increasing demand and liquidity within Cardano’s DEXs, contributing to the overall health and dynamism of the network.
ADA’s Price Surge Reflects Bullish Sentiment
The increased activity on the Cardano network and the general market’s bullish outlook have also translated into a substantial appreciation in the value of ADA, Cardano’s native cryptocurrency. ADA has seen a 47% increase in its value over the past month, currently trading at $0.57, which is its highest price level since August 2022.
The growing demand for ADA is partly attributed to the profitability of transactions involving the coin. AMBCrypto’s analysis of the Market Value to Realized Value (MVRV) ratio – a metric comparing the market price to the average acquisition price of the asset – shows that ADA’s MVRV ratio recently crossed above the zero line for the first time since January 2022. With an MVRV ratio of 1.76%, ADA holders are assured of at least 2% profit on their investments if sold at the current value, underscoring the positive sentiment surrounding Cardano and its native token.